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NEW QUESTION 192
The compliance officer for a private bank has been tasked with reviewing the procedure for authorized signatories on customer accounts to ensure it is in line with relevant Wolfsberg Anti-Money Laundering Principles for Private Banking.
Which three statements from the procedure are in line with Wolfsberg? (Choose three.)
- A. The responsible private banker must establish the identity of a holder of general powers over an account (e.g. a signatory for the account) and, as appropriate, verify that identity.
- B. Where the Authorized Signatory is not a lawyer or accountant, due diligence as to the source of funds and wealth of the Authorized Signatory should be undertaken.
- C. If an individual has signing authority over an account but does not act on a professional basis as a manager of funds, the responsible private banker must understand and document the relationship between that authorized signer, the account holder, and, if different, the beneficial owner of the account.
- D. The responsible private banker must obtain the necessary documentation establishing the authorized signer's authority to act on behalf of the account holder or beneficial owner (e.g. a Power of Attorney).
- E. Where due diligence has been satisfactorily completed on all authorized signers, the responsible private banker may reduce the due diligence performed on the account holder and/or beneficial owner.
Answer: C,D,E
Explanation:
Explanation/Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/20.%20Wolfsberg-FAQs-on- Intermediaries-May-2012.pdf
NEW QUESTION 193
What is the appropriate compliance control for identifying politically exposed persons (PEPs) according to the Basel Committee's paper on Customer Due Diligence for Banks?
- A. Requiring that the customer discloses that they are a PEP or an associate of a PEP
- B. Determining that a local figure is a PEP
- C. Reviewing relationships at account opening and on a periodic basis
- D. Reviewing when a relationship is established
Answer: C
Explanation:
Explanation/Reference: http://www.menafatf.org/sites/default/files/Newsletter/PEPs_in_relat_on_to_AMLCFT.pdf
NEW QUESTION 194
A new compliance officer is reviewing the bank's anti-money laundering program and notices that the risk assessment was completed six months ago. Since that time, the bank acquired another financial institution, renamed the internal records group, and streamlined cash handling procedures.
Which factor causes the compliance officer to update the bank's risk assessment?
- A. The bank acquired another institution
- B. The internal records group has been re-named
- C. The cash handling procedures were streamlined
- D. The risk assessment was completed six months ago
Answer: B
NEW QUESTION 195
An AML compliance officer receives notice of government update including the names of the latest
terrorists sanctioned by the United Nations Security Council. Which would be the most appropriate step to take?
- A. Notify the Board of Directors
- B. Update training information to include the latest names
- C. Update the monitoring software containing sanctioned persons
- D. Inform the customers that their funds will be frozen
Answer: C
NEW QUESTION 196
The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account.
Which two things must the vice president acquire under the USA PATRIOT Act? (Choose two.)
- A. A list of all the customers of the correspondent bank
- B. A list of the types of businesses served by the correspondent bank
- C. The identity of 10% owners of the correspondent bank, unless it is publicly traded
- D. Information relating to the foreign bank's anti-money laundering program
Answer: C,D
NEW QUESTION 197
Which of the following is the best action to take regarding a particular account once suspicious activity is reported by the institution?
- A. Immediately close the account.
- B. Secure all supporting documentation.
- C. Notify the client that the transaction has been reported.
- D. Freeze the funds pending notification from the competent authority.
Answer: B
NEW QUESTION 198
What was the topic the Wolfsburg Group's first guidance addressed?
- A. Private banking
- B. Merchant acquiring activities
- C. Enhanced due diligence for high risk customers
- D. AML training for financial institution staff
Answer: A
NEW QUESTION 199
After evaluating recent changes to international standards, an anti-money laundering specialist should consider enhanced due diligence on accounts held by which three groups of people?
- A. Retail Account Holders
- B. Precious Metal Dealers
- C. Foreign Exchange Dealers
- D. Lawyers
Answer: B,C,D
NEW QUESTION 200
Which statement is true according to the FATF?
- A. When deciding on the range of offenses to be covered as underlying offenses for money laundering, each country may decide how serious offenses
- B. Countries should not decide how they will define predicate or underlying offenses, or the nature of any particular elements of those offenses that make them serious offenses, but should base the offenses on FATF definitions
- C. Predicate or underlying serious offenses are determined by the designated non-financial businesses or professionals that are covered by the FATF 40 Recommendations
- D. When deciding on the range of offenses to be covered as predicate offenses for money laundering, each country should define the nature and any particular elements of those offenses
Answer: B
NEW QUESTION 201
An anti-money laundering specialist is employed by a large multi-national bank. The bank is planning to open an international department that will be responsible for expanding services to various countries. The head of the new international department has asked specialist to assess risks associated with the bank's expansion plans. What three set of materials should be included as a reference? Choose 3 answers
- A. FATF 40 Recommendations
- B. U.S. Patriot Act
- C. The Egmont Group Statement Purpose
- D. Customer Due Diligence for Banks issued by Basel committee on Banking Supervisions
Answer: A,B,D
NEW QUESTION 202
According to Basel Committee on Banking Supervision's Customer Due Diligence for Banks, which of the following should provide an evaluation of a bank's policies and procedures independent from its management?
- A. The credit risk department
- B. The compliance function
- C. The Board
- D. A peer institution
Answer: B
NEW QUESTION 203
The compliance officer for a private bank has been tasked with writing a policy on how the bank will deal with intermediaries.
Which two aspects should be included in the policy in respect of intermediaries to align it with the Wolfsberg Anti-Money Laundering Principles for Private Banking? (Choose two.)
- A. When an intermediary introduces clients to the bank, it is not necessary for the bank to perform due diligence on the intermediary's clients.
- B. Where an intermediary introduces clients to the bank, the bank must obtain the same type of information with respect to an introduced client that would otherwise be obtained by the bank, absent the involvement of the intermediary.
- C. Where an intermediary manages assets on behalf of a number of clients and is the account holder with the bank, but that intermediary does not conduct the same level of due diligence as the bank, it is necessary for the bank to undertake due diligence on the intermediary's clients.
- D. Where an intermediary manages assets on behalf of a number of clients and arranges for the opening of accounts for its clients with the bank, and that intermediary is a financial institution subject to similar regulations, it is necessary for the bank to perform due diligence on the intermediary's clients.
Answer: B,D
Explanation:
Explanation/Reference: https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/faqs/20.%20Wolfsberg-FAQs-on- Intermediaries-May-2012.pdf (2)
NEW QUESTION 204
Transfers of money over the last 6 months to a corporation in a jurisdiction with strict secrecy laws triggered an alert. Which of the following should cause the most suspicion of money laundering?
- A. The company has bearer shares.
- B. The jurisdiction is a known tax haven.
- C. No financial statements have been filed for 3 years.
- D. The corporation director is a European citizen.
Answer: B
NEW QUESTION 205
A bank maintains a relationship with a customer who owns a small bakery business.
Which customer action indicates potential money laundering?
- A. The customer recently wired a large amount to a foreign jurisdiction where family is located
- B. The customer continually makes regular cash deposits
- C. The customer purchased property insurance that is twice the value of the business
- D. The customer has multiple bank accounts at several locations
Answer: C
NEW QUESTION 206
A customer has held an account at a local credit institution for 10 years. The account has received deposits twice weekly for the same amount and has never shown signs of suspect behavior. Monitoring software indicated that in the past few months the account has received several large deposits that were not in line with the account history.
When asked, the customer states she recently sold a piece of property, which is supported with a proof of sale.
Which of the following should the compliance officer do next?
- A. File a suspicious transaction report with the competent authorities.
- B. Document reasons for not filing a suspicious transaction report.
- C. Contact the local Financial Intelligence Unit for advice.
- D. Investigate these unusual transactions further.
Answer: A
NEW QUESTION 207
Which activity is most likely to facilitate money laundering through on-line systems with inadequate controls?
- A. Conducting a large volume of transactions
- B. Providing continuous worldwide access
- C. Conducting anonymous transactions
- D. Conducting large value transactions
Answer: B
NEW QUESTION 208
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